ATLAS ENERGY CORP.
C$6.0 million of forecast before-tax royalty cash flow during the first 12 months, based on established production and two planned oil well reactivations
CALGARY, Alberta, Sept. 25, 2026 (GLOBE NEWSWIRE) -- Atlas Energy Corp. ("Atlas" or the "Company") (TSXV: ATLE), a TSXV Sandbox issuer, is pleased to announce that on September 24, 2026, it completed the acquisition of a newly created gross overriding royalty (the "Royalty") on the working interest of Caledonian Midstream Corp., a privately held Alberta oil and gas producer ("Vendor"), in producing oil and gas assets located in the Southwest Alberta Foothills (the "Royalty Lands"), for a cash purchase price of C$15.0 million (the "Transaction"), pursuant to a royalty purchase and sale agreement (the "Purchase Agreement") and a gross overriding royalty agreement (the "Royalty Agreement") entered into with Vendor on that date. The Transaction has been accepted by the TSX Venture Exchange (the "TSXV") and, as described below, the TSXV has approved the Company's exit from the TSXV Sandbox, which will be effective on September 29, 2026.
The Transaction represents the Atlas management team's first investment since assuming leadership of the Company. It combines established production, highly attractive base-case returns and additional development potential not included in Atlas's underwriting. The resulting cash flow is expected to fund the Company's annual corporate cost base, adding a strong Canadian foundation to Atlas's broader international royalty and streaming strategy.
Atlas has continued to evaluate and advance a broad range of international opportunities throughout the past year. The Company believes the current commodity environment reinforces the importance of disciplined underwriting and differentiated transaction structuring. With the Atlas platform expected to be largely supported by cash flow from the Royalty, the Company can remain selective as it pursues an initial international investment that demonstrates the scale, quality and repeatability of its long-term strategy.
Based on Atlas's current base-case assumptions, the Royalty is forecast to generate approximately C$6.0 million of before-tax cash flow during the first 12 months following closing and achieve payout of Atlas's initial investment in approximately three years.
Atlas's base case is supported by existing production and the planned reactivation of two oil wells expected to return to production in December 2026. It assigns no value to the additional well reactivations and oil and sulphur-rich drilling opportunities identified across the Royalty Lands.